EU Approves Suzano's $3.4 Billion Joint Venture with Kimberly-Clark Unconditionally
Details and Implications of the Suzano-Kimberly-Clark Deal
EU Antitrust Approval Granted
BRUSSELS, May 11 (Reuters) - Brazil's Suzano, the world's largest pulp maker, on Monday secured unconditional EU antitrust approval for its $3.4 billion joint venture with U.S. diaper and tissue maker Kimberly-Clark, a European Commission statement said.
Background and Deal Structure
Anticipated Approval and Stake Details
The full approval, anticipated by a Reuters report last week citing unidentified sources, is a boost for the deal announced in June last year, which will see Suzano take a 51% stake in Kimberly-Clark's international tissue business that includes popular brands such as Kleenex.
Ongoing Regulatory Scrutiny
The deal is also being investigated by the UK watchdog.
Industry and Regulatory Context
Regulatory Environment
Businesses in recent months have faced intense scrutiny over their deals as regulators seek to balance the interests of consumers with geopolitics, sustainability benefits, and calls to take a more lenient line to create European champions.
Paper Industry Trends
Consolidation and Market Challenges
The global paper industry is also facing a wave of consolidation as it grapples with falling demand and structural overcapacity.
(Reporting by Inti Landauro)
